Alibaba Inks Logistics Pact With USPS

Cainiao, the logistics arm of China's largest on-line platform Alibaba, has teamed up with the United States Postal Service (USPS) to speed delivery of goods ordered by U.S. consumers on
Alibaba’s international on-line shopping platforms.Under a Memorandum of Understanding (MoU), Cainiao and the USPS have agreed to collaborate on the development of enhanced shipping solutions for cross-border e-Commerce.

In addition to helping provide more efficient shipping channels into the U.S. for Chinese merchants and manufacturers selling on Alibaba’s AliExpress global-shopping website, the USPS will also
work with Cainiao to expand its worldwide shipping capabilities, especially in South America.

Phenomenal growth rates expected
The global B2C cross-border e-Commerce market is expected to grow from US$230 billion in 2014 to US$1 trillion in 2020, according to a report from global consulting firm Accenture and
AliResearch, Alibaba Group’s research arm. Alibaba and related companies have concluded similar arrangements with several national mail carriers including Singapore Post and Spanish Post.
Cainiao vice president Wan Lin described the pact with the USPS as “a key part of Alibaba’s globalisation strategy and our vision to enable consumers around the world to enjoy the convenience and
benefits of e-Commerce.”
With more than 600,000 employees, the USPS is the leading postal and shipping service provider in the U.S., the world’s biggest consumer market.